Review of Team NZ's 2003 America's Cup Defence

This is a summary of a report which reviews Team New Zealand’s 2003 America’s Cup Defence and which sets out to answer the fundamental question, why did Team New Zealand lose the America’s Cup 0-5?

Management structure failed
Team New Zealand's management structure, which consisted of three individuals with specific, self contained areas of responsibility reporting to a four-person board, did not deliver a winning combination of boat and crew to the start line for race one of America’s Cup 2003. The management structure adopted did not pull together sufficiently well the areas of sailing (including sail development) boat design and administration. The most critical weakness was that no one individual had a total overview of where the Team was at, and final responsibility for and authority over decision making.

Design failure of NZL81
A second, significant contributing factor was the structural failure NZL81 experienced in mid December 2002. The impact this catastrophe had on the Team cannot be understated.
The failure of NZL81 led to downstream decisions being made which severely handicapped and disadvantaged the crew and the preparation of NZL82. Hull and deck on NZL81 failed again just prior to the start of the first race in the America’s Cup. NZL81’s failure undermined the Team’s confidence in the structural soundness of NZL82. This led to compromises being made when testing the limits of NZL82’s capabilities, and eventually to pushing the boat during racing. NZL82 was never made to stretch in more than 25 knots and the issues this created showed up dramatically in the defence series, when the boat was pushed to its limits for the first time. Confidence was dented even further when gear failed during race one of the Cup defence.

Insufficient preparation
The process of Team New Zealand becoming a design led campaign was gradual and design was able to dominate through the lack of an overall Team leader with the responsibility for balancing the demands of boat development and sailing needs. Late delivery and structural problems substantially reduced the time for trialing and NZL82 started racing without adequate preparation. Team New Zealand was not as prepared as it should have been and had planned to be. The obvious comparison is that the Alinghi syndicate was able to build a cup winning team from scratch in the same time period as Team New Zealand had to reconstruct itself. A key difference is that Alinghi had the former decision makers, other than Tom, and formal and informal leaders, from Team New Zealand. The Alinghi funding base was secure from the outset and this freed them from the pressure of raising finance.

Sailing Issues
The preferred sailing combination was composed of some of the world’s most talented yachtsmen. Undoubtedly they have the ability to compete successfully against the best. However, it was a relatively inexperienced after guard in America’s Cup terms.
Being the defenders, with new crew members, they had no real Team experience of the pressure cooker atmosphere of the America’s Cup. They also went in at the deep end, with no chance to hone their skills through a challenge series or ease into the regatta with relatively unimportant early races.

Conclusion
The single, most important cause was the management structure adopted for the Team following the sudden and unexpected departure of its former leadership in May, 2000. All subsequent downstream events and occurrences can be traced back to the management structure not delivering. Therefore, those responsible for the management structure – Peter Menzies, Ralph Norris, John Risley and Kevin Roberts (as directors), Dean Barker (sailing) Ross Blackman (administration) and Tom Schnackenberg (boat design) – have collectively and individually accepted responsibility for the Team’s performance.

Future prospects
In preparation for mounting a challenge in 2007, Team New Zealand has already addressed the issue of management structure:
1. Grant Dalton has been appointed Managing Director of the Team, and the separate functions of sailing, boat design and administration will report to him.
2. It has been determined that the Team will be sailor led, with the sailors briefing the designers as to what they want in a boat.
3. The design team’s focus will be on delivering to the sailors’ specifications, while utilising the innovative approach that has been a feature of Team New Zealand’s previous campaigns.
4. With that resolved, the Team’s director structure will now be examined and any appropriate changes made.

The Team has recognized the need to improve its structure and, with the appointment of Grant Dalton as Managing Director, has now covered one of the key elements missing in 2003. What Team New Zealand still lacks is committed funding to mount a European challenge. Finding that funding is now our priority, and we expect to make a decision no later than the end of the year as to whether Team New Zealand will challenge in 2007.


This report has been prepared by Peter Menzies on behalf of, and approved by Directors: Peter Menzies, Ralph Norris, John Risley, Kevin Roberts; Executives: Dean Barker, Ross Blackman, Tom Schnackenberg